Equilibrium quantity of loanable funds

Definition

The equilibrium quantity of loanable funds is the point where the supply and demand for loanable funds intersect. It represents an equilibrium condition where borrowers' demand for loans matches lenders' willingness to provide them.

Related terms

Supply of loanable funds: The amount of available financial resources that lenders are willing and able to provide at different interest rates.

Crowding out effect: A situation where increased government borrowing reduces private sector borrowing/investment by driving up interest rates.

Interest rate elasticity: A measure that shows how responsive the quantity of loanable funds demanded or supplied is to changes in interest rates.